SIVAGNANA VADIVU NACHIAR Vs. CONTROLLER OF ESTATE DUTY

JUDGEMENT

(1.) THE following question has been referred to this Court by the Tribunal under S. 64(1) of the E.D. Act, 1953 at the instance of the accountable person:

(2.) THE accountable person took the matter in appeal and the Appellate CED held that under the gift deeds, the deceased should retain possession and enjoyment of the properties till the donees attain majority and in view of the retention of the beneficial interest which covered the entire property donated, the property should be included in the principal estate of the deceased either under S. 5 or under S. 10 of the Act.

(3.) THE relevant portion of the document under which the deceased gifted property to his children is extracted below: (script in Tamil hence not produce here) Since the gift deeds executed by the deceased in favour of all the children were identical, it is not necessary to consider them separately. Under the document, which has been set out above, the deceased donor has executed the settlement in favour of his minor son, Shanmuganandan. The deceased described himself as guardian of his minor son, Shanmuganandan, and has stated that he is giving away the properties worth about Rs. 10,000 to his son as a gift but that the properties will be enjoyed without any power of alienation by the deceased till the donee attains majority and that after the donee becomes a major, he will get the property absolutely with powers of alienation. The question is whether the retention of possession and enjoyment of the properties by the donor till the donee attains majority will attract S. 10 of the Act.